Unit Code Econ101
Microeconomic
Analysis
Unit Coordinator
Dr. Ikhlaas Gurrib
Department of Finance and Accounting
College of Business Administration
UNIT OUTLINE
Semester 2 2010/11
INTRODUCTION
“The ideas of economists . . . are more powerful than is commonly understood.
Indeed the world is ruled by little else.”
John Maynard Keynes
Welcome to Microeconomic Analysis 101 and the College of Business Administration at
PSU.
Microeconomic Analysis is an introductory unit in microeconomics. It covers that broad
branch of economics which deals with the behaviour of individual economic agents
(consumers, resource-owners, businesses), with the choices and decisions made by
these agents and with the effects of these decisions on other economic agents and on
the economy as a whole.
Economics is an interesting, exciting and vital subject. Economics will help you
understand the world in which you live, it will enable you to be a more informed
participant in the economy and it will give you the tools to evaluate economic policy
decisions of the government.
Good luck with your studies this semester and I sincerely hope that economics will
provide you a rewarding insight into the world of commerce.
ESSENTIAL ADMINISTRATIVE INFORMATION
Unit Title
Microeconomic Analysis 101
Unit Study Package Number
Econ 101
Unit Coordinator
Dr. Ikhlaas Gurrib
Teaching Area
Economics
Credit Hours
3
Mode(s) of study
Internal
Co-, Pre- requisites
None
Result Type
Grade and Mark
Unit Website
http://info.psu.edu.sa/psu/fnm/mgurrib/index.html
Faculty or School Website
http://www.psu.edu.sa/cba.html
Study Load
3 hours per week (normally 2 hours lectures + 1 hour tutorial)
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UNIT COORDINATOR & PRINCIPAL LECTURER
Every unit has a person who is responsible for the overall administration of that unit. This person
is the Unit Coordinator. For this unit your Unit Coordinator will also be your Principal Lecturer.
This is the staff member that will assist you with your learning in this unit. They will also be
responsible for overseeing the marking of assessments and providing feedback in relation to your
progress.
Their contact details are below:
Unit Coordinator:
A/Prof Muhammad Ikhlaas Gurrib
Email:
[email protected]
Phone:
01 494 8977
Building:
CBA
Room:
E349
Contact Hours:
Consultation
Hours
ECON101 1.10-2pm SMW FCR-11
2-3pm SW
In case you need consultation, please come and see me in my office during consultation hours.
Unless for urgent matters, it is advisable you email me first at least 24hours prior to your visit.
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UNIT SYLLABUS
Introduction to economic concepts and principles – the economic problem; economic way of
thinking; scarcity; opportunity cost; marginal analysis; economic models; production
possibility frontier; positive statements; normative statements
Demand and supply analysis – markets & prices; law of demand; law of supply; determinants of
demand; determinants of supply; market equilibrium; changes in demand & supply
Elasticity – price elasticity of demand; midpoint method; price elasticity & total revenue; income
elasticity of demand; cross elasticity of demand; price elasticity of supply
Efficiency & equity – consumer surplus; producer surplus; efficiency of competitive equilibrium;
fairness of competitive markets
Applications of market economics – price ceilings; price floors; taxes; tax incidence
Global markets – gains from trade; comparative advantage; trade restrictions; tariffs
Market failure –, externalities; property rights; Coase theorem, public goods, common resources
The economics of the firm – economic profit; decision time frames; production function; law of
diminishing returns; short run cost; fixed & variable cost; average & marginal cost; long run
cost; economies & diseconomies of scale
Perfect competition – economic profit & revenue; profit maximising output; MR = MC; short and
long run equilibrium; competition & efficiency
Monopoly – sources of monopoly; equilibrium; inefficiency of monopoly; price discrimination;
regulating monopoly
Imperfect competition – monopolistic competition; short and long run equilibrium; efficiency;
advertising; oligopoly; traditional models of oligopoly
Oligopoly games – game theory; prisoners’ dilemma; Nash equilibrium
LEARNING OUTCOMES
On successful completion of this unit you will be able to:
1.
2.
Explain the nature of the economic problem – Apply discipline knowledge,
principles and concepts
Apply the economic way of thinking to analyse real world events –Think
critically, creatively and reflectively
3.
Analyse and evaluate economic issues using economic theory –Think critically,
creatively and reflectively
4.
Demonstrate economic literacy by writing & speaking effectively using economic
theory – Communicate effectively
LEARNING ACTIVITIES
You should attend your scheduled class. Students will receive a DN grade in class
when he accumulates 13 absences. Furthermore, each absence results for the loss of
half a point on a scale of 100. Pease review your student manual for more information
on PSU policies. (http://www.psu.edu.sa/cba/Students_Manual_CBA.pdf)
The lectures cover the syllabus material. Lecture slides are available on the faculty
website– you should print these and take them to your lecture session. The lectures will
summarise the material covered in the textbook and will focus on the important concepts
and understandings of the course. The test and the exam will be based on the material
covered in the lectures.
The class hours are the only opportunity you will have for regular group discussion of
topics covered in the lectures and textbook. Tutorials will provide you with the best guide
as to your understanding of the course material. This is why it is essential to attend and
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be well prepared. This means reading the text, revising your lecture notes and preparing
answers to the tutorial questions and problems. As well you should ask your professor
to explain any parts of the course that you have not understood or found difficult. You
should expect to devote at least 3-4 hours to reading your text/lecture notes and
preparing answers to the tutorial discussion questions.
Each week you will be asked by your professor to explain an answer to the class, or use
the whiteboard to illustrate an answer. In economics, it is important to communicate
effectively in writing using economic theory and to engage confidently in interpersonal
communication in tutorials.
STUDENT FEEDBACK
It is highly valuable that students do give their feedback to improve the unit further for
future students at PSU. They can directly consult Dr. Ikhlaas Gurrib and make
suggestions. These might include ways to improve course outlines, assignments,
presentations, web site information, etc.
LEARNING RESOURCES
Learning resources are located on the website:

Unit Outline

Sample MCQs

Assignment article
TEXT BOOK
You will need to purchase the following textbook in order to complete this unit:

Michael Parkin, Microeconomics with MyEconLab plus e-book 1-semester Student
Access Kit, 9th Edition, Addison-Wesley / Prentice Hall.
Recommended Texts:
There are many other Principles of Microeconomics texts available from the library.
You do not have to purchase the following textbooks but you may like to refer to them.

McTaggart D., Findlay C. & Parkin M. 2007, Microeconomics, 5th edition,
Pearson Education

Robert Pindyck, Daniel Rubinfield, Microeconomics, International Edition, 7th
Edition.
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ASSESSMENT DETAILS
Assessment Summary
The assessment for this unit consists of the following items.
Assessment Tasks
Participation
Major 1
Major 2
Assignment
Final exam
TOTAL
Worth
Due
Unit Learning
Outcome Assessed
10%
-
1,2,3,4
10%
29th March
1, 2, 3
15%
26th April
1, 2, 3
25%
8th May
1, 2, 3, 4
40%
Exam Week
1, 2, 3, 4
100%
Assessment 1 – Attendance and Participation
While students are expected to attend classes as per PSU policies and guidelines,
participation marks will also count toward 10% of your final grade. Students will be
asked to answer some questions using verbal or graphical representations. This
ensures potential PSU graduates are capable of distinguishing themselves are leaders
of the community. You will have two attempts at answering questions in class to
demonstrate your participation.
Assessment 2 - Major 1 and Major 2
Worth: 25%
Major 1: Held on 29th March 10%
Major 2: Held on 26th April 15%
The tests will examine material covered in chapters 1–3 (Major 1) and Chapters 1-7
(Major 2). The test will consist of 10 and 15 multiple choice questions. The test will be
conducted in normal lecture time. Please obtain your test time from your professor.
Sample multiple choice questions can be found on the website.
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Assessment 3 - Assignment (Article Analysis)
Worth: 25%
Due: No later than 8th May 2011 3pm (Riyadh Time).
You are to select one article for economic analysis from the list given by your professor.
The article will relate to one or more of the topics (chapters) covered in the lecture
program. You are to apply your microeconomic theory to explain and analyze the
newspaper/media article. The assignment should be 1200 – 1400 words in length and
include well labeled diagrams. Complete the assignment cover sheet and submit with
your assignment. It is also very important to discuss the choice of topic/article with your
professor well before the submission date.
I would suggest that you present your assignment as a report – include an introduction,
economic concepts/theories to be applied, analysis, conclusion and references. I would
also expect good essay writing skills and proper referencing. You can always check with
your professor about planning and preparing your assignment. The assignment is worth
25%: 17 marks will be allocated for content and analysis (appropriate choice of article,
relevant concepts and depth of coverage, sound application of theory, logical structure)
and 8 marks will be allocated for professional skills (presentation, correct written
expression, correct grammar and spelling, referencing).
The assignment can be viewed from the Dr. Ikhlaas Gurrib’s website.
The assignment can be handed to your professor in class or placed in his mail box by
the due date. Penalties will apply for late assignments.
An important part of assignment writing is to correctly reference the sources of
information that you have used. Correctly referencing your work will help to avoid
plagiarism. Plagiarism means presenting the work or property of another person as
one’s own, without appropriate acknowledgement or referencing (the copying of other
people’s work and/or ideas). Plagiarism is a form of cheating. The penalty for plagiarism
is a mark of zero and possible expulsion from the unit and/or course of study.
It is a group assignment and a maximum of 4 students will be allowed per group.
Teamwork is highly encouraged.
Assignment Marking Criteria
CONTENT (70%)
Sound application and explanation of theory
Relevance of content: appropriate level of detail
Well-reasoned arguments and conclusions
Critical analysis and evaluation
Structure (clear, logical organization)
PROFESSIONAL SKILLS (30%)
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Extent of research
Correct in-text referencing and list of references
Style: fluent, concise, correct English & grammar
Professional presentation
Assessment 3 – Final Exam
Worth: 40%
Due: Exam Week – refer to Exam timetable
The exam will consist of a multiple choice section and a written question/problem
section. The exact format will be provided towards the end of the semester. The exam
will cover all the topics in the semester program. More details will be given given in due
course by your professor.
Guidelines for Submission:
All assignments must be accompanied by an Assignment Attachment Form (or cover page).
All assignments must be received by 8th May 2011.
Assignment Marking
Students should allow a 2 week marking turnaround for written assignments.
STUDENTS’ RIGHTS AND RESPONSIBILITIES
It is the responsibility of every student to be aware of all relevant legislation, policies and
procedures relating to their rights and responsibilities as a student. These include:

the Student Charter,

the University’s Guiding Ethical Principles,

the University’s policy and statements on plagiarism and academic integrity,

copyright principles and responsibilities,

the University’s policies on appropriate use of software and computer facilities,

students’ responsibility to check enrolment,

deadlines, appeals, and grievance resolution,

student feedback,

other policies and procedures

electronic communication with students
See http://www.psu.edu.sa/ByLaws/RulesRegulations_of_Undergraduate_Study_n_Exam.pdf for
comprehensive information on all of the above.
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ADDITIONAL INFORMATION
Telephone Contacts:
If you have a query relating to administrative matters such as:


requests for deferment of study
difficulties with accessing online study materials
obtaining assessment results
Please contact the College of Business Administration, Student Affairs.
Deferrals
A deferred assessment is the formal approval by a Board of Examiners for a student to complete
an outstanding assessment task for a unit at a later date.
Outstanding assessment tasks can include an examination or assignment or other work.
Approval for deferred assessment should only be given in circumstances where the specified
criteria are met. For further information please see the current PSU Student manual:
http://www.psu.edu.sa/cba/Students_Manual_CBA.pdf
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UNIT STUDY CALENDAR
If you have a printed copy of this document, you may like to tear off this final page and keep the
Study Calendar handy as you work through the unit.
Semester 2 2010/11
WEEK
Week
starting
1.
12th Feb
Unit Outline and Assessment
2.
19th Feb
1. What is Economics Chapters 1, 2
3.
26th Feb
2. Demand Chapter 3
4.
5th March
3. Supply
5.
12th March
4. Elasticity Chapter 4
19th March
5. Efficiency & Equity Chapter 5
26th March
6. Markets in Action Chapter 6
6.
7.
MODULE/CHAPTER/TOPIC:
8.
9th April
7 Global Markets Chapter 7.
9.
16th April
8. Market Failure Chapters 16, 17
10.
23rd April
9. Firms, Production & Cost Chapter
11.
30th April
10. Perfect Competition Chapter 10
12.
7th May
11. Monopoly Chapter 11
13.
14th May
12. Imperfect Competition Chapter 12, 13
14.
21th May
13. Nash Equilibrium and Oligopoly
15.
28th May
14. Course Review & Exam preparation
16.
4th June
ASSESSMENT
DUE
DATE
Major 1
29th
March
Major 2
26th April
Assignment due
8th May
Final Exams
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